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China has asked Didi Global Inc (NYSE: DIDI), the largest ride-sharing service, to delist from the U.S bourses. Regulators claimed that they were concerned about the company leaking sensitive information. However, critics point out that many U.S companies, including Boeing Co (NYSE: BO) and Palantir Technologies Inc (NYSE: PLTR), hold the nations’ secrets and can still publicly trade their shares without revealing any secrets.

In addition, China has a loose definition of secrets. They could refer to any transaction between an individual or an organization with the state as a secret. China also doesn’t allow the U.S to audit its companies, therefore, giving them little reason to give its secrets.

Didi drew an IPO without approval from regulators

Many have painted out that Beijing regulators were unhappy with Didi after drawing an IPO in the U.S without its approval. After the incident, they began a cybersecurity review into the company. Cyberspace Administration has now asked Didi to develop government-approved details for delisting.

Didi has the option of listing in Hong Kong or going private. Both these moves will not be as profitable as listing in the U.S. Moreover, this could make investors lose a lot of their money.

Experts point out that other companies such as Tencent Holdings Inc (OTCMKTS: TCEHY) and Alibaba Group Holding (NYSE: BABA) should tread more carefully. A wrong move could result in the government removing them from the U.S stock exchange.

China adds regulations to ride-hailing companies

In another blow to the company, Beijing regulators have also created new policies to govern ride-hailing cars in the country. Regulators claim that these moves are to protect drivers. They require companies to strengthen social insurance and increase commission. Furthermore, regulators have ordered ride-hailing companies not to take advantage of consumers’ data.

These new regulations come as a blow to Didi as delisting could put them in an unfavorable financial position. SoftBank Group Corp (OTCMKTS; SFTBY) is also to delist. The news resulted in a 5.2% drop in share value.

Meanwhile, in Japan, stocks suffer as fear of the omicron strain of COVID-19 spreads. Nikki 225 Stock, for instance, lost by 2.5%.

Although Japan is one of the most vaccinated developed countries, many citizens are still worried that the new strain could be highly infectious and that vaccines may not work against it.